On 6 July 2026, the European Commission proposed a Council Implementing Decision authorising Ireland to apply reduced excise duty rates on gas oil for commercial road transport operators, including road haulage and bus passenger services, from the date of notification until 30 September 2026. The measure responds to sharp fuel price increases following the outbreak of hostilities in the Strait of Hormuz on 28 February 2026, which led to an 18% monthly rise in gas oil prices in Ireland in March 2026.
The proposed reduced effective excise rates are 0.25185 EUR per litre until 31 August 2026, and 0.31689 EUR per litre from 1 September 2026 to 30 September 2026. These rates fall below the EU minimum levels set by Directive 2003/96/EC and apply only to operators qualifying under Ireland's diesel rebate scheme as per Article 7(2) of the Directive. The authorisation is temporary and limited; it ceases to apply if the Council later sets new minimum taxation levels incompatible with this Decision. The Commission found the measure unlikely to distort the internal market or competition given its short duration and exceptional circumstances.
The proposal now requires adoption by the Council. The measure is expected to provide immediate relief to Irish road transport operators facing increased fuel costs, while maintaining the integrity of the EU's minimum taxation framework. The temporary nature of the authorisation ensures that the measure does not create long-term distortions in the internal market. The impact on EU competitors is considered negligible due to the short timeframe and targeted scope. The Commission's assessment concluded that the measure is proportionate and justified by the extraordinary circumstances of the energy price spike. The Council is expected to vote on the proposal in the coming weeks.